Lew Wasserman transformed MCA from a music booking shop into a talent empire that effectively inverted the old studio model. In the late 1940s and into the 1950s, MCA moved aggressively into representing screen actors and then began assembling entire film packages — writer, director and star — which the financially-shrunken studios were happy to buy rather than develop in-house. Wasserman also popularized a tax-avoidance and compensation strategy pioneered by earlier agents: turning a star into a personal corporation that could receive ownership points in a film, reducing individual tax liability and giving talent a direct slice of profits. The most famous early example was James Stewart on Anthony Mann's Winchester '73 (1950), where Stewart received points — one of the watershed moments in the industry that shifted lucrative backend participation to on-screen talent. The result was seismic: actors gained bargaining power, studios lost leverage, agency packaging drove up salaries and fees, and the modern profit-participation era was born — a structural change that Wasserman and MCA leveraged into multi-decade dominance.
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